FDIC Sends Cease-and-Desist Letters To FTX For Misleading Consumers
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FDIC Needs Written Proof In 15 Days
The businesses have 15 days in each case to take down the "false and misleading representations" from their websites and social media profiles and to give written proof to the Federal Deposit Insurance Corporation. In its letter to FTX.US, the regulator brought up a now-deleted tweet that CEO Brett Harrison wrote on July 20: "Employer direct deposits to FTX US are kept in separate FDIC-insured bank accounts." Harrison tweeted in response to the letter,
"We didn't mean to mislead anyone, and we didn't suggest that FTX US itself, or that crypto/non-fiat assets, benefit from FDIC insurance."
The organization said that reviews of cryptocurrency exchanges published on Cryptonews.com stated that Coinbase, eToro US, Crypto.com, and Gemini were FDIC-insured. The agency claims that website owner Crypto.com registered the domain at the end of July and has been sending visitors to another website that sells cryptocurrency products. The FDIC requests that the owner stop using the domain name immediately.